Following a 0.3% decline in May, Industrial Production rose 0.6% in June (better than the 0.3% rise expected) but year-over-year remains lower (-0.7%) for the 10th straight month. This is the longest non-recessionary streak of industrial production declines in US history. Gains on the month were driven by motor vehicle assembly (which is ironic givenm near-record inventories), but Q2 ended with a decline of 1.0% - the 3rd quarterly decline in a row (also not experienced without a recession).
Washington's "sinkhole of leeches," where money 'corrupts' and House members are "puppets" to lobbyists who bankroll their campaigns is officially the region with the greatest wealth inequality in the world. According to OECD data via Goldman Sachs, the average household disapoable income in Washington D.C. is 165% of the national average, higher than any other region in the world...
French President Francois Hollande has become the most senior critic of former EU chief Jose Manuel Barroso's decision to join Goldman Sachs. "It's not about Europe, it's about morality," said Hollande in his annual interview to mark Bastille day, France's national day. "Legally, it's possible, but morally, it's about the person, it's morally unacceptable."
The idea (now being pushed by a surprising number of people who ought to know better) that governments should take advantage of historically low interest rates to “invest” with borrowed money has an obvious fatal flaw. That is, accumulating even more negative or zero-rate debt will make it functionally impossible to raise rates to “normal” levels, which is to say levels where markets can once again function as mechanisms for moving savings into productive investments. It’s not a stretch to call this the end of capitalism and the beginning of a new Dark Age.
Social tensions in USA threaten to break apart the North American union in unimaginable ways. Disenfranchised and unemployed masses have organized and grown due to the internet and social media. Trump Presidency can stop it.
As China's deflationary refined product finally hits the world, and leads to a flood of gasoline and diesel across the continents, a curious development is the build up of gasoline tankers in New York City's own harbor...
Simply put, Musk is supporting the system’s determination to strip people of various forms of self-reliance.It’s one thing for government agencies to promote “clean” energy. Many are immediately suspicious. But Musk’s overriding talent is to make federal authoritarianism seem positively sexy. He is the rock star of alternative energy... "Elon Musk is an obvious fraud. Something that all of his companies rely upon is continued gub’mint cheese. Without the largesse of the state, his entire empire would have already collapsed."
Following two days of inexplicable attacks by none other than a Supreme Court Justice, who said she would move to New Zealand if Trump were elected, as well as calling Trump "a faker", the Donald finally snapped and ripped Supreme Court Justice Ruth Bader Ginsburg in a Twitter message late Tuesday. "Justice Ginsburg of the U.S. Supreme Court has embarrassed all by making very dumb political statements about me," Trump wrote on his Twitter account. “Her mind is shot — resign."
The shootings continue. According to AP, Police arrested five people for allegedly shooting at officers in Washington, D.C., early Tuesday, officials said. No injuries were reported. The good news is that the group allegedly fired at police to avoid arrest, not as part of a targeted attack on cops, a police official told The Washington Post.
At JPMorgan Chase, we’re starting by giving thousands of employees a raise. Our minimum salary for American employees today is $10.15 an hour (plus meaningful benefits, which I’ll explain later), almost $3 above the current national minimum wage. Over the next three years, we will raise the minimum pay for 18,000 workers to $12 to $16.50 an hour, depending on geographic and market factors.
As noted here Wednesday, June 29th we had orders in the equity futures markets to sell the S&P at 2045; to sell the EURO STOXX 50 at 2837 and to sell the Nikkei at 15,800…two thirds of a unit for each so that we’ll be short of two units in total now that all are filled. As of this morning, the S&P is 2127 (-4.0% against us)... We have had quite enough; we want out now… losing 1.6% on average. Cover these positions immediately… or sooner.
David Folkerts-Landau, the chief economist of Deutsche Bank, has called for a multi-billion dollar bailout for European banks. Speaking to Germany's Welt am Sonntag, the economist said European institutions should get fresh capital for a recapitalization following a similar bailout in the US. What he didn't say is that the US bailout took place nearly a decade ago, in the meantime Europe's financial sector was supposed to be fixed courtesy of "prudent" fiscal and monetary policy. It wasn't.